Install

Get the latest updates as we post them — right on your browser

. Last Updated: 07/27/2016

NLMK to Bid for Coking Coal Deposit

Novolipetsk Steel, the country's largest maker of the metal by market value, said Thursday that it would bid for an untapped coking coal deposit in East Siberia.

The Ulug-Khem deposit contains 640 million metric tons of hard coking coal reserves, according to a regulatory filing by Novolipetsk's Stoilensky GOK mining unit. It is located in the republic of Tuva, where competing steelmaker Evraz Group acquired another untapped coal field in March.

Unlike domestic rivals, Lipetsk-based Novolipetsk, or NLMK, has zero self-sufficiency in coal and depends on prices charged by third-party suppliers, according to ING research. Coking coal and iron ore are raw materials for making steel.

The Natural Resources and Environment Ministry is accepting bids for the Ulug-Khem license until July 2 and will pick the winner Sept. 21, Interfax reported.

Severstal may consider bidding for the deposit as well, the company's resources division has said.